Senegal’s economic recovery plan faces scrutiny amid fmi negotiations

Senegal’s PRES generates 63.4 billion CFA francs in 2024 amid IMF talks

Finance Minister Cheikh Diba reported to the National Assembly this week that the Plan de Redressement Économique et Social (PRES) has mobilized 63.4 billion CFA francs so far in 2024. The announcement comes as Senegal navigates tense negotiations with the International Monetary Fund (IMF), where fiscal targets play a pivotal role in potential funding discussions.

PRES targets 762.6 billion CFA francs annually by 2026

The PRES, unveiled by Prime Minister Ousmane Sonko on August 1, 2024, outlines a broader plan to raise 5,667 billion CFA francs between 2025 and 2028. For 2026 alone, the government aims to secure an additional 762.6 billion CFA francs through the initial budget law. Currently, 63.4 billion has been collected, including 7.9 billion from customs revenues, leaving nearly 700 billion still to be recovered to meet the annual objective.

The IMF is closely monitoring Senegal’s fiscal trajectory, given the country’s significant financial constraints. The government’s ability to meet revenue targets will heavily influence ongoing discussions with the Bretton Woods institution regarding a potential support program.

Government defends PRES performance against criticism

In response to skepticism from some quarters, Waly Diouf Bodian, political advisor to the Prime Minister, refuted claims that the PRES is falling short of its goals. He asserted that the plan is generating between 15 and 20 billion CFA francs monthly, with land and money transfer reforms expected to yield even stronger results in the coming months.

The government’s revenue collection progress will be scrutinized further this week during a parliamentary session, where lawmakers are expected to question officials on the PRES’s real-time performance against the quarterly targets outlined in the budget law.